~>Bottom line: the commodities business will be riskier and less efficient, and there is no corresponding benefit to offset this cost. All to give a politically desperate senator a fig leaf
In sum: the compromise bill shafts commodities not once, not twice, but three times. This will force commodity producers, processors, and marketers to bear more risk, and to incur higher costs to manage risks.
And for what? The spinoff of banks’ commodity business certainly won’t have the slightest effect on systemic risk given the trivial size of the trade relative to the other activities they still undertake. The niggardly end user exemptions will not affect systemic risk either. The position limits will not reduce price distortions in the market.
Fck them all! All their 'fixes' have only made markets riskier and more difficult for the average trader, and they dare say they are doing all this to reduce risk and protect their constituents...
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If you take anything I say as advice, you're crazier than I am.
